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Adopting Outsourcing as a Growth Strategy for SME

Outsourcing is a common strategy for all types of businesses. It is used by Small & Medium Enterprises (SME) during growth phase, and also large companies looking for ways to be more efficient in how they run operations.

Outsourcing can also benefit your business for another reason – it can help build and grow your business.


1.      Better Capital Investment

Most SMEs has limited resources, especially CAPITAL. Hiring support staff during growth phase can mean utilizing the capital in non-revenue generating areas. This includes the additional workstation, office space, and benefits.

Outsourcing on the business support activities can free up the capital and companies can re-invest on areas that help the company grow.

2.      Greater Flexibility and Scalability

Growth phases can be unpredictable and risky. And many times, companies will need to refine its growth activities and scale up (or down) according to the market condition.

Outsourcing the non-core activities will allow the flexibility for the business to adapt to the peaks and troughs of the market without having high capital expenses of staff cost and office expenses, allowing the company to scale up its support when the market is growing, and also scale down when the market are stagnant.

3.      Compliance & Risk Management

As companies grow, it enter into a new phase and will be faced with new risks. Companies will have to ensure a higher level of compliance with all government regulations. Outsourcing Consultants can help you mitigate these risks and ensure the company is compliant and bring down the business risk to a manageable level.

4.      Focus

Outsourcing allows companies to focus on growth and developing strategies to capitalize on the growth phase their business is experiencing. Outsourcing can help to shift business focus from non-core (or typically known as non-revenue generating) activities towards work that drive business results (i.e. direct and indirect revenue generating activities).


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